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Loan Purpose: |
Mortgage insurance for permanent loans to acquire or refinance existing multifamily rental housing (apartments, nursing homes, assisted-living, etc.).
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Eligible Projects: |
Any multifamily property that is at least three years old and does not require substantial rehabilitation.
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Project Rents: |
No rent control - underwritten utilizing market comparables.
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Repairs/
Rehabilitation: |
Major rehabilitation is not permitted, but repairs, less than 15% of value or $6,500 per unit plus a high cost factor, may be included.
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Occupancy/Vacancy: |
Project will be underwritten utilizing a minimum 5% vacancy factor.
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Replacement Reserve: |
An initial capital replacement reserve account will be established at closing and monthly payments will be made to this account.
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Loan Criteria: |
Refinance: lesser of 85% of value, 85% of NOI or 100% of refinance costs
Purchase: lesser of 85% of value, 85% of NOI or 85% of acquisition costs
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Secondary Financing: |
Must be pre-approved and subordinated to the HUD first mortgage.
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Equity Take-outs: |
Allowed up to 80% of appraised value. |
